HDFCBANK equity 1 min read
HDFC Bank Q4 Results: Strong Loan Growth Offsets NIM Pressure
HDFC Bank reports 22% profit growth in Q4 FY26 on the back of healthy loan book expansion, though net interest margins compress slightly.
By Oliver Grant
Quarterly Performance Snapshot
| Metric | Q4 FY26 | Q4 FY25 | YoY Change |
|---|---|---|---|
| Net Profit | ₹17,800 Cr | ₹14,600 Cr | +22% |
| NII | ₹31,500 Cr | ₹28,800 Cr | +9.4% |
| NIM | 3.42% | 3.58% | -16 bps |
| Gross NPA | 1.24% | 1.33% | -9 bps |
| Loan Growth | 18.5% | 16.2% | — |
Key Takeaways
Positives
- Loan book grew 18.5% YoY to ₹26.8 lakh crore, driven by retail and SME segments
- Asset quality improved with gross NPA declining to 1.24%
- Deposit growth accelerated to 16% YoY
- CASA ratio stable at 42%
Concerns
- Net interest margin compressed by 16 bps due to competitive deposit pricing
- Operating expenses grew 15% YoY as branch network expanded
- Credit cost inched up slightly in unsecured retail book
Valuation and Industry Posture
At historical price levels of ₹1,840 (Q4 FY26 reporting period), HDFC Bank traded at approximately 2.8x FY27E book value and 18x FY27E estimated earnings.
The merger integration was largely completed by Q4 FY26, with management prioritizing deposit growth and deposit-to-credit ratio normalization.
Sources & Data Provenance
- HDFC Bank Q4 FY26 Financial Results Submission to BSE/NSE (April 2026)
- Reserve Bank of India (RBI) Sectoral Deployment of Bank Credit Reports
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